9-January-2024-Editorial

FUTURE OF STREAMING. IF OTT IN 2023 WAS ABOUT GROWTH, IN 2024 IT WILL BE ABOUT PROFITABILITY

The Over-The-Top (OTT) market in India, marked by its shift in 2023, stands at the crossroads of growth and profitability. This sector delivers content directly to viewers over the internet, challenging traditional TV platforms. In 2023, the landscape witnessed disruptions, shaping its course.

Benefits of OTT:

• Flexibility and Convenience: Users enjoy anytime, anywhere access across devices for unparalleled convenience.
• Diverse Content: A wide array of movies, TV shows, documentaries, and originals cater to varied tastes.
• Personalization: Algorithms recommend content based on viewing habits, enhancing user experience.
• Cost-Effectiveness: OTT services offer affordable pricing, including free content with ad support.
• Global Accessibility: Platforms transcend geographical barriers, allowing global access.

Limitations of OTT:

• Internet Dependence: Seamless streaming requires reliable high-speed internet.
• Content Fragmentation: Exclusive content rights on different platforms lead to fragmentation.
• Data Privacy Concerns: Collection of user data raises privacy concerns if mishandled.
• Content Quality and Quantity: Varying content quality and overwhelming volume pose challenges.

State of OTT in 2023 and Outlook for 2024:

2023 Disruptions:

• Platforms offered premium content for free, impacting subscription revenue.
• Monetization challenges persisted due to high content costs.
• Freemium models emerged, curbing password sharing and integrating ads.

2024 Outlook:

• Expect cost-efficient content strategies with a decline in experimental content.
• Mergers like Zee/Sony and collaborations like RIL/Disney may restructure dynamics.
• Pricing strategies will evolve, likely intensifying limitations on sharing and embedding ads.
• Regulatory compliance may tighten, emphasizing sensitivity toward religious or minority sentiments.

Laws Regulating OTT Platforms:

MeitY Guidelines (2021):

• Soft-touch self-regulatory architecture with a Code of Ethics.
• Three-tier grievance redressal mechanism for OTT platforms.
• Publishers appoint a Grievance Officer based in India.
• Publishers join a self-regulating body registered with the Ministry of Information and Broadcasting.

Oversight Mechanism:

• Third-tier Oversight Mechanism by the Ministry of Information Broadcasting and Inter-Departmental Committee.

Better Regulation Suggestions:

• Self-Regulation Frameworks: Encourage OTT platforms to establish transparent content guidelines and rating systems.
• Collaborative Oversight Bodies: Form independent bodies with industry experts, stakeholders, and government representatives.
• Content Classification and Ratings: Implement standardized content classification systems for informed viewing choices.
• Transparency in Data Sharing: Encourage selective viewership trend sharing with oversight bodies.
• Regular Audits and Compliance Checks: Conduct periodic audits to ensure platforms adhere to guidelines.

Conclusion:

OTT has revolutionized entertainment consumption, offering flexibility and choice. As the market evolves, a balance between growth and profitability, driven by technological advancements and changing consumer preferences, shapes the dynamic landscape of media and entertainment. The future will witness collaborative efforts to ensure responsible content curation and regulatory frameworks in line with evolving dynamics.